The December issue of Progress in Lending features a wonderful article from 360 Mortgage Group COO Andrew WeissMalik. In the article, WeissMalik elaborates on the reemergence of the wholesale channel within a recovering mortgage industry. We wanted to provide a summary of his article within our blog:
WeissMalik begins by talking about the wholesale’s channel to provide a maximum choice of lenders, products, and prices for consumers. Unfortunately, the housing crash greatly diminished the wholesale channel from consisting of about 7 out of 10 loans with brokers to only 1 out of 20 loans.
The wholesale channel has slowly rebuilt itself since then and today, on top of providing top choices for consumers, it is framed with a new structure of technology, innovation, and competition. 360 Mortgage Group serves as an ideal example of a mortgage company that focuses on innovative technology.
For example, as part of a change enacted by the FHA in early 2011, brokers were no longer able to directly obtain case numbers for files. In response, 360 created a technology solution that gave brokers the ability to receive instant case numbers within our web platform. We have also developed an online system for brokers to live chat with our experienced underwriters. Solutions like these have been a huge success with our brokers.
Mid-sized wholesale mortgage banks now dominate the industry since the retreat of large banks are also unburdened by the legacy technology systems that keep big banks from adapting to changing market conditions or the needs of brokers and consumers.
The innovative technology, flexibility and competition within the wholesale channel will surely help the channel to continue on the path to recovery and take hold of market share from other origination channels in the years to come.
To read Andrew WeissMalik’s article in full, visit it in an online version of the latest issue of Process in Lending here.